Chapter 2 The Almost Ideal and Translog Demand Systems
Quantifying Consumer Preferences
ISBN: 978-1-84855-312-5, eISBN: 978-1-84855-313-2
Publication date: 29 May 2009
Abstract
This chapter reviews the specification and application of the Deaton and Muellbauer's (1980) almost ideal demand system (AIDS) and the Christensen et al. (1975) translog (TL) demand system. In so doing we examine various refinements to these models, including ways of incorporating demographic effects, methods by which curvature conditions can be imposed, and issues associated with incorporating structural change and seasonal effects. We also review methods for adjusting for autocorrelation in the models' residuals. A set of empirical examples for the AIDS and the log TL version of the translog based on historical meat price and consumption data for the United States are also presented.
Keywords
Citation
Holt, M.T. and Goodwin, B.K. (2009), "Chapter 2 The Almost Ideal and Translog Demand Systems", Slottje, D.J. (Ed.) Quantifying Consumer Preferences (Contributions to Economic Analysis, Vol. 288), Emerald Group Publishing Limited, Leeds, pp. 37-59. https://doi.org/10.1108/S0573-8555(2009)0000288005
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited